Exciting news arrived in my inbox yesterday. FRHI Hotels & Resorts, which is behind the luxury brands Fairmont, Raffles, and Swissotel, has been officially acquired by AccorHotels Group:
Following the approval of shareholders at the General Shareholders Meeting on July 12, 2016, AccorHotels Group officially announces the acquisition of FRHI Hotels & Resorts (FRHI) and its three prestigious luxury hotel brands: Fairmont, Raffles and Swissôtel. This addition of three remarkable brands instantly positions AccorHotels as a leading player in the global luxury hotel market, increases long term growth potential and profitability, and significantly expands the company’s footprint in North America, world’s largest and most influential consumer market.
The acquisition means that Fairmont, Raffles, and Swissôtel’s 154 hotels and resorts (of which 40 are under development) and 56,000 rooms in 34 countries are added to AccorHotels’ expansive network. And among these are the world’s most iconic and historic hotels located in key strategic cities like The Savoy London, Raffles Singapore, Fairmont San Francisco, New York’s The Plaza, Fairmont Le Château Frontenac in Quebec City, and Le Royal Monceau Raffles Paris.
This also means that, in the Philippines, Fairmont Makati and Raffles Makati will join Sofitel Philippine Plaza Manila and Novotel Manila Araneta Center in the same AccorHotels portfolio.
The acquisition combines FRHI’s proven track record and expertise in operating and marketing luxury hotels with AccorHotels’ robust global operating platform, extensive loyalty base, and industry-leading digital capabilities. AccorHotels plans to generate approximately 65 million EUR in revenue and cost synergies with the deal, and it will take advantage of FRHI’s customer base that includes three million loyalty members—75 percent of which are from North America.
To lead the two companies in this fundamental step, Chris Cahill has been named Chief Executive Officer, Luxury Brands. Later on, he will oversee a new structure that integrates Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman, and Swissôtel in one tier.